Matter of 1605 Book Center v. Tax Appeals Tribunal

In Matter of 1605 Book Center v. Tax Appeals Tribunal (83 NY2d 240 [1994], cert denied 513 U.S. 811 [1994]) the Court of Appeals upheld imposition of sales tax on receipts from peep show booths pursuant to Tax Law 1105(f)(1) as places of amusement. The peep show booth consisted of separate booths surrounding a stage from which patrons were able to view nude or partially nude females performing. Patrons would enter the booths and deposit coins in a slot, which resulted in a curtain or screen raising to enable the patron to see the performance. In determining that the coins so deposited were taxable, the Court of Appeals stated: Notably, there can be no doubt that sales tax would apply if patrons viewed the same live performance in the company of other audience members in a theater (see, 20 NYCRR 527.10[b][3]). The booths are factually not taxably distinguishable from a usual theater except for the element of privacy. Accordingly the fee paid is an admission charge to a place where entertainment Is provided. (Matter of 1605 Book Center v. Tax Appeals Tribunal, 83 NY2d at 245, 609 NYS2d at 147.)